Ind. Senate panel starts work on tax caps

Tuesday morning an Indiana Senate Committee began the first of several talks about property tax caps.

One bill would delay unemployment tax increases on businesses from January 2010 until January 2011.

Senate Republicans say the delay is needed because the tax increase would hurt businesses that are struggling with the bad economy.

The Senate Tax Committee will also take up a resolution that could ultimately put caps on property tax bills into the state constitution.

"The first property tax reform which was hailed as a savior in 1972, so we've got 37 years of appearance to show that if you don't have some kind of outside constitutional control, you're never going to achieve an effective control,” said Senator Luke Kenley (R) Noblesville.

The House will hold hearings next week about the issue.

The up-coming legislative session begins January 5, 2010.